In the first indication of the government's future policy on currency, a top RSS ideologue consulted in decision-making has said the new 2,000-rupee notes would also be phased out gradually (pictured - Gurumurthy)

In the first indication of the government's future policy on currency, a top RSS ideologue has said the new 2,000-rupee notes would also be phased out gradually in the years to come.

In an exclusive interview with India Today, S. Gurumurthy supported the notion of lower-denomination banknotes for the country.

Gurumurthy, a key member of the Sanghbacked Vivekananda Foundation, has been advising seniors in the government over ways to deal with demonetisation.

His comments came in the middle of the furore over the abrupt scrapping of 86 per cent of the nation's currency by the Modi government.

Gurumurthy described the new Rs 2,000 bills as a 'bridge' to meet the gap in cash while it is being taken out of circulation.

But the new biggest notes, he said, would also be 'phased out' gradually.

'If you introduce new currency, it takes five to seven years to fake it,' Gurumurthy said. 'But before that, you will withdraw Rs 2,000 notes. The Rs 2,000 note is only a bridge,' he said.

The 2,000-rupee bills, added Gurumurthy, only aimed to replace the void of Rs 500 and Rs 1,000 notes.

Swaminathan Gurumurthy's comments came in the middle of the furore over the abrupt scrapping of 86 per cent of the nation's currency by the Modi government

'It is obvious that they (the government press) are not able to print Rs 500-1,000 notes. The only way they could do it is by printing Rs 2,000 notes. After that, they will remonetise it without demonetising and then withdraw it,' he explained.

Prodded further on if he believes that the 2,000-rupee bills would be pulled back without demonetising at some point in the next five years, he said the government would withdraw them gradually.

'Obviously... banks will be told that when you get Rs 2,000 notes, you don't return them. Slowly, banks will accumulate Rs 2,000 notes and replace them with lower denomination.

'If anything remains, like 5-10 to 20 per cent notes, they will say, in next one month or so, you change your Rs 2,000 notes for Rs 500 notes,' he said.

Gurumurthy cited practices the country had adopted in the past to replace old series with the new currency.

A bank employee counting new Rs 2000 notes before issuing to the customers in Srinagar

'It is called phasing out. We have phased out many such series in the past,' said the RSS leader, also a renowned chartered accountant.

'The government is, however, committed to moving towards smaller denomination notes', Gurumurthy added. Indian currency, according to the ideologue, should have Rs 500 as its highest denomination followed by Rs 250 and Rs 100.

Gurumurthy defended the Prime Minister Narendra Modi for his November 8 demonetisation announcement, which came under heavy attack both from the Opposition and independent economists.

'Nothing happens in India through persuasion, which is why determined action by the government is justified,' Gurumurthy argued.